The decision to increase the prices of water and electricity, and the timing of its announcement is within the jurisdiction of the Cabinet, said sources at the Electricity and Housing ministries. They expect the average increase in electricity prices to reach 30 percent for all categories starting July.
The increase in the prices of electricity aims to reduce the volume of subsidies by LE20 billion, as it rose by 100 percent after the flotation of the Egyptian pound, said the sources.
The average cost of electricity production doubled after the flotation by 100 percent from LE46 to LE95 per kilowatt. Accordingly, the value of the subsidy allocated to electricity increased to LE82 billion. The increase is planned gradually over until 2021, said the sources.
The Egyptian Electric Utility and Consumer Protection Regulatory Agency has prepared a proposal with the application of the new electricity tarifs and submitted it to the Cabinet.
Consumers who use over 650 kilowatts a month will be deprived of the gradual rates system. The price a kilowatt for them will be fixed at 95 piasters, the sources expected.
The increase in drinking water prices will probably be applied starting October, said the sources.
Edited translation from Al-Masry Al-Youm